When you buy your supplies from any market, you go to the cashier to pay for them
Suppose that these goods are worth a thousand riyals, dirhams or pounds, for example
and that you told the cashier that you will pay with your credit card, not in cash
You will get your card out of your pocket and swipe it in the credit card terminal machine
At that point, if your balance in the bank, equals a thousand riyals, so
the withdrawal process will be accepted and the balance will be deducted from your account
and you will take your goods accordingly and go home, but if there is no balance
the cashier will ask you to leave those goods as long as you do not have the money
This is the situation we fall into almost every day, whether we buy goods, clothes, or even a cup of coffee.
There is a third party or a central authority higher than you and them.
That authority is either the bank or a credit card company, or both of them if possible.
The important thing is that there is a third party that tracks bank balances
in order to prevent fraud or counterfeit currency operations.
It tracks and checks balances and records financial transactions
such as deducting a thousand riyals from your bank account while shopping in a market, for example.
Although you may see it as an easy process because it is done pretty quickly
in fact there is a group of very complex and expensive operations that make it that fast and safe the way it is
that's why the third party takes a large amount of fees for this process.
Who totally wants to get rid of this third party so that the transactions between the first two parties
are completely direct, safe and almost without fees? Yes, exactly as guessed.
The inventor of Bitcoin; that mysterious person whose pseudonym is Satoshi Nakamoto
How will he/she make sure that I actually own Bitcoin and not just a scammer?
And how will he make sure that it is really real Bitcoin and not a fake currency?
As aforementioned, there are no banks, credit card companies, nor any other parties because Satoshi,
the inventor of the most important digital currency, will cancel this third party in the first place
Therefore, the Bitcoin transaction will be between two entities only
Here came the role of a group of people scattered throughout the world
who could be called miners or auditors. What do they do?
In short and simply, they make sure that the person actually has bitcoin
and can pay through it for groceries and that he/she is not a scammer.
Well they made sure that I actually have a bitcoin balance and that this transaction
and other transactions take place at the same time all over the world.
For example, someone in Brazil sent 10 bitcoins to a friend in India.
A parent pays his children's tuition at a school in Canada with Bitcoin.
They count the hundreds and thousands of transactions that take place around the world in Bitcoin.
Miners make sure of My transaction in a market with some other transactionsa
Once They came out just right, they would put them into what is called a block
A block after another block until they make a chain or the blockchain
In that block, a group of transactions is recorded, like the number of bitcoins that came out of my wallet
to the supermarket wallet in order to pay for my orders.
Talking about a blockchain, it is natural that there is a starting block in a sequence comes the second,
third and fourth block, all of them are connected to each other and all return to the foundation, which is the starting block.
As I said in the first episode of the series, Satoshi Nakamoto launched Bitcoin
and announced its charter or constitution on October 31, 2008
Almost two months later, on January 3, 2009, he launched the first block in the Bitcoin blockchain.
The world before this date is not the same as after it; it is a completely different world.
The first block is called the Genesis Block or Block zero
A puzzling and mysterious block just the same as Satoshi Nakamoto himself
This block is completely different from the other thousand blocks that came out in the blockchain.
Suffice to say that it is the only block wherein Satoshi wrote a very strange sentence in its code
We will get to know many details about the composition of this block in the next episode, God willing,
what is written in it and what are the many mysteries surrounding it.
Just a second, MR. Ashraf.. Who are those miners exactly?
How do they check people's bitcoin balance?
They do this for what?
What is this block? What is a Blockchain or Blockchain?
All these things will be explained in a simple way in the coming episodes.